Hillicon Valley – Trump’s media venture takes a tumble

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Former President Trump’s social media platform faced additional hurdles Monday with stock in the SPAC bringing the platform public dropping after reports of top executives leaving the company. The drop also followed news that Tesla CEO Elon Musk acquired a 9.2 percent stake in Twitter, sending shares up for the platform more than 20 percent.  

Send tips and feedback to The Hill’s tech team, Rebecca Klar (rklar@digital-staging.thehill.com) and Chris Mills Rodrigo (cmillsrodrigo@digital-staging.thehill.com), and cyber reporter Ines Kagubare

(ikagubare@digital-staging.thehill.com).

Let’s get to it.

More trouble for Truth Social 

Stock in the SPAC that is bringing former President Trump’s social media platform Truth Social public fell Monday after top executives reportedly resigned from the company.  

Stock in the SPAC, Digital Word Acquisition Corp, fell 14 percent in premarket trading Monday, Yahoo reported. 

The fall came after chief of technology Josh Adams and chief of product development Billy Boozer resigned, which Reuters first reported. Chief legal officer Lori Heyer-Bednar also resigned, according to a report from Politico. 

Truth Social’s plunging stock and top executive resignations add to the growing list of troubles plaguing the rollout of Truth Social. 

What is a SPAC again?  A special purpose acquisition company (SPAC), also known as a blank check company, is a publicly traded company created to merge with an existing company. 

In December, Trump Media and Technology Group, the parent company of Truth Social, said it secured $1 billion before going public through a SPAC. The Securities and Exchange Commission (SEC) said it would be investigating the planned merger. 

Read more here.

Twitter’s new largest outside shareholder

Twitter shares rose more than 20 percent Monday morning on news that Tesla CEO Elon Musk acquired a 9.2 percent stake in the social media platform. 

Musk is now the largest outside shareholder, with 73,486,938 shares, according to a Securities and Exchange Commission (SEC) filing released Monday. 

The Tesla chief is a very active Twitter user with a committed fan base. Just last week, he polled his 80 million followers on whether the platform “rigorously adheres” to principles of free speech. 

More than 70 percent responded “No,” prompting Musk to ask whether a new platform is needed. 

Read more here.

STATE INAUGURATES CYBER BUREAU  

The State Department launched its new Bureau of Cyberspace and Digital Policy on Monday in what it says is a modernization of the agency aimed at emerging technology issues in diplomacy. 

A statement issued by the department said the bureau will address “the national security challenges, economic opportunities, and implications for U.S. values associated with cyberspace, digital technologies, and digital policy.” 

It will consist of three policy units, including international cyberspace security, international information and communications policy, and digital freedom. 

Read more here.

BITS & PIECES

An op-ed to chew on: NASA needs to commit to a permanent lunar base 

Lighter click: Excellent little guy 

Notable links from around the web: 

• The Latest Covid Misinformation Star Says He Invented the Vaccines (The New York Times / Davey Alba)
• The Metaverse Has Bosses Too. Meet the ‘Managers’ of Axie Infinity (Motherboard / Edward Ongweso Jr.) Internet communities are battling over pixels (The Washington Post / Taylor Lorenz)

One last thing: Hertz to buy 65,000 EVs

Rental car company Hertz announced plans to purchase up to 65,000 electric vehicles (EVs) from Swedish car manufacturer Polestar.  

In a statement on Monday, Hertz also said it will extend its electric vehicle options to ride-share drivers as a way to further accelerate electrification, according to the statement.  

“Today’s partnership with Polestar further builds on our ambition to become a leading participant in the modern mobility ecosystem and doing so as an environmentally-forward company.” Hertz CEO Stephen Scherr said in a statement. 

Read more here.

That’s it for today, thanks for reading. Check out The Hill’s technology and cybersecurity pages for the latest news and coverage. We’ll see you Tuesday.